After years of struggling with its bottom line, Rent the Runway is finally showing signs of recovery. Yet this week, in a surprise announcement, founder Jennifer Hyman revealed she would be stepping down as CEO after 18 years. Hyman said she “left everything on the field” and wanted to “go build a new dream”, but investors don’t seem convinced, with shares immediately dipping 11 per cent. The question now is whether her interim replacement, Teri Bariquit, a board member and 37-year ret
ail veteran, can continue the upward trajectory of the once-pioneering rental service.
Leaving on a high note
In the brand’s Q4 report announcing results for fiscal year 2025, Rent the Runway disclosed that revenue hit $91.7 million, marking a 20 per cent increase year-over-year from $76.4 million in Q4 of fiscal year 2024. Additionally, the company confirmed it had attained an average active subscriber count of 146,356, representing an increase of 16 per cent from 126,148 at the end of the fourth quarter of fiscal year 2024.
These improved metrics were driven in part by reinvestment into appealing new merchandise for the brand’s new and existing subscribers to browse, strengthening its balance sheet and leveraging AI for better personalization and customer experience.
“Real talk – knowing when to step back takes more courage than most founders realize. The ‘RTR is stronger than it’s ever been’ timing isn’t a coincidence – it’s strategy,” commented Jeremy Merrell Williams, head of luxury strategy for Vyudu Inc. “I’ve seen too many leaders hold on past their optimal contribution window. Your team transformation stories hit different because that’s the real legacy – not the exit, but the people you developed who can carry it forward. Honestly, 18 years of building something that outlasts you? That’s the game.”
Peter Comisar, founder and managing partner of Story3 Capital Partners, one of Rent the Runway’s more recent major investors and a member of the company’s board, noted that the brand is on a strong footing to move forward following Hyman’s departure.
“We also see significant tailwinds for the business from ‘re-dressing’ demand and sizing flexibility, the continued expansion of rental as a service, and the company’s ability to deepen relationships with both customers and brand partners,” Comisar said. “We believe Rent the Runway is well-positioned to scale its multi-faceted platform and drive long-term value creation, and we are fully supportive of Teri [Bariquit] and the management team as they execute on the company’s strategic vision.”
Succeeding in a challenging market
Neil Saunders, managing director at GlobalData, noted that Rent the Runway has been making progress by driving subscriber growth and reducing losses.
“Jennifer will be satisfied that she is leaving it in a good position,” said Saunders. “The challenge for Teri is to build on this base and ensure that the firm is investing in the experience to win more customers and secure more spend. Investors want profitable growth, and it will be up to Teri to engineer it. Fortunately, she has a background focused on both customers and fashion, which will be helpful.”
Retail strategist Christine Russo, principal of RCCA, argued that 2026 is not an easy time for online retailers. “The cost of customer acquisition is out of control, and there is also a threat of AI-native newcomers that we can expect to rattle the status quo with better personalization and customer-centric capabilities,” she said. “With the founder gone, there is a new narrative to put out there. Storytelling connects with customers, and it can be beneficial to tell a new story that will resonate with them.”
Further reading: Jennifer Hyman to leave Rent the Runway after 16 years
